Tag Archives: Hotel Association of India

According to its secretary general, MP Bezbaruah, the Hotel Association of India is considering asking the government to provide incentives to small hotel operators for adopting sustainability practices. While big luxury and five-star operators are leading the way on this front, the smaller members of HAI are lagging behind due to the cost of taking up the initiatives.

Hotel Association of India (HAI) will be having its conclave on 29 September, 2022 at the Lalit New Delhi, which will be inaugurated by G Kishan Reddy, Union Minister of Tourism, Culture and DoNER, revealed MP Bezbaruah, Secretary General, HAI.

Hotel Association of India (HAI) has urged Manoj Sinha, Lieutenant Governor, Jammu & Kashmir and highlighted the recent unfair and adhoc raids, imposition of fines and threat of legal action on member hotels in the State. HAI pointed out that these impromptu actions by the state government were motivated by complaints of exorbitant prices and service deficiencies from tourists.

Hotel Association of India (HAI) has submitted a recommendation to Finance Minister Nirmala Sitharaman, highlighting the steep rise in insurance premiums for hotel properties in the last few years. HAI has urged the government to restore the insurance premium rates for hotel properties to the level of FY 2018-19. MP Bezbaruah, Secretary-General, HAI said, “The current very high insurance premium rates as compared to pre-FY 2018-19 is a major disincentive.”

MP Bezbaruah, Secretary-General, Hotel Association of India (HAI), has said that the FM’s announcement on free visas has a very strong symbolic message that we have the confidence to welcome visitors and that tourism and hospitality is a strong pillar of post-Covid economic recovery strategy. “We sincerely hope that such measures will be logically followed by measures to make the industry recover and be ready to welcome tourists. Measures like liquidity support and exemption from statutory taxes. HAI would like to compliment the FM on this initiative and look forward to some more pragmatic initiatives to create jobs and livelihoods through a rejuvenated Tourism and Hospitality industry. As always HAI will be there for a committed role to be played by the Tourism and Hospitality industry in the national economic development programme,” he added.

Hotel Association of India (HAI) has written to the Prime Minister Narendra Modi for immediate intervention to provide relief to the hospitality industry which is on the verge of collapse, in five key areas—one-time settlement of loans and extension of loan moratoriums till September 2021, waiver of all statutory liabilities at Centre, State and Municipal levels for the pandemic period, stimulus package subsidising of salaries of hotel employees, according ‘Infrastructure Status’ and to bring Tourism & Hospitality to the concurrent list of the Constitution. In its request HAI pointed out that over 40% of hotels have shut or are on the brink of closure and 70% of overall jobs are now in danger directly or indirectly.

KB Kachru, Vice President, Hotel Association of India, has shared that they have created state chapters so that they can deal both at central level and state level. “We realised that we needed to have a better voice and we needed to be significant enough to make a difference. Keeping that in mind, we felt that we needed to deal both at central level and state level. Hence, we decided that in order to expand, we need to get more quality products, respective to the segment, whether it’s luxury hotels, first-class hotels, mid-market hotels, or good economy hotels, and make them part of us, so that we have right numbers and then work towards getting our due from different states because all of them have different policies. Hence, we established state chapters in different states,” he said.

Hotel Association of India (HAI) has launched its West Bengal Chapter, and has submitted a memorandum of industry demands to West Bengal Chief Minister, Mamata Banerjee and Finance Minister Dr. Amit Mitra, seeking industry status for the hospitality sector. The association has suggested that this will help in reducing costs and encourage re-investment while bringing greater transparency in the sector functioning. A favourable policy decision of according industry status and allowing benefits available to manufacturing will strengthen the Indian hospitality industry, preserve and unlock its immense potential to make a significant contribution to the State’s GDP and jobs, supporting the post-pandemic economic revival of the region. MP Bezbaruah, Secretary General, Hotel Association of India, said, “The Association believes that granting industry status to the sector will enable hotels across the state to avail benefits towards electricity and water tariff at an industrial rate, lower property tax, rationalisation of taxes & license fees, simplified approval process for hotel projects & hotel operations and other benefits accorded to industries – thus helping in ushering transparency, reduce costs, and encourage reinvestment. Such small steps are crucial for revival of the sector after the disastrous impact of the Pandemic and essential considering the extent of employment and income the sector generates.”

Hotel Association of India (HAI) has launched its State Chapter for Punjab and appealed to the State Government to accord ‘industry’ status to the hospitality sector, thus enabling hotels across the state to avail the benefits towards lower electricity and water tariff, lower property tax, rationalisation of taxes & licence fees, and simplified approval process for hotel projects and hotel operations.

The Department of Consumer Affairs, Central Government has called for clarification from the Hotel Association of India, which have replied that the service charge is completely discretionary and should a customer be dissatisfied with the dining experience he/she can have it waived off. Therefore, it is deemed to be accepted voluntarily. The Department of Consumer Affairs has asked the State Governments to sensitize the companies, hotels and restaurants in the states regarding aforementioned provisions of the Consumer Protection Act, 1986 and also to advise the hotels/restaurants to disseminate information through display at the appropriate place in the hotels/restaurants that the ‘service charges’ are discretionary/ voluntary and a consumer dissatisfied with the services can have it waived off. A number of complaints from consumers have been received that hotels and restaurants are following the practice of charging ‘service charge’ in the range of 5-20%, in lieu of tips, which a consumer is forced to pay irrespective of the kind of service provided to him. The Consumer Protection Act, 1986 provides that a trade practice which, for the purpose of promoting the sale, use or the supply of any goods or for the provision of any service, adopts any unfair method or deceptive practice, is to be treated as an unfair trade practice and that a consumer can make a complaint to the appropriate consumer forum established under the Act against such unfair trade practices.